Alkermes Plc (ALKS)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 984,446 | 860,255 | 796,512 | 756,643 | 833,593 |
| Payables | US$ in thousands | 65,649 | 32,843 | 55,721 | 46,034 | 54,261 |
| Payables turnover | 15.00 | 26.19 | 14.29 | 16.44 | 15.36 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $984,446K ÷ $65,649K
= 15.00
The payables turnover ratio measures how efficiently a company manages its accounts payable by indicating the number of times a company pays off its average accounts payable balance over a specific period.
Analyzing Alkermes plc's payables turnover ratio over the past five years, a notable increase is observed from 3.32 in 2019 to 6.64 in 2022, highlighting an improvement in the company's ability to settle its accounts payable obligations. This surge may indicate that Alkermes plc is paying off its suppliers at a faster rate, potentially improving its relationships with vendors and benefiting from potential early payment discounts.
However, it is worth noting that there is missing data for the payables turnover ratio in 2023, which limits our ability to assess the trend more comprehensively. Further analysis and comparison with industry benchmarks would provide a deeper understanding of Alkermes plc's efficiency in managing its payables.
Peer comparison
Dec 31, 2023